- Pay yourself first.
Trick: In a word, “early,” if you have not started early on, then start today! Financially successful people let their money work for them through the power of compound interest and time. You can start small. Save a portion of your income regularly and consistently.
- Needs VS Wants
Have a plan to prioritize your expenses: NEEDS first, WANTS second. To create a more realistic plan, track your expenses for six months to a year to help you see what you are actually spending. When you spend less than what you earn, debt is avoided and savings occur. Financially successful people earn interest; they don’t pay for it.
Tips: Bills should be paid automatically or when you receive them, not when they are due. Do not wait the full 30 days to pay credit card bills. This provides the illusion of having more money than you really do. Pay utilities when you receive the bills. Leverage automated payment options if the bill is the same reoccurring amount from month to month.
- Avoid Debt
If you are having worries or stressed about how you handle money, the problem could be the following:
– You are not able to control impulse spending,
– You do not appreciate the value of money, or
– You are living above your means
If none of the above, the problem is probably you. (Sorry!)
Tips and tricks: Leave your credit card at home. In that way, you avoid swiping your credit card whenever you are tempted to splurge. If you have debts, pay in full to avoid penalties. Better yet, for your groceries and basic purchases, pay in cash. Also, make sure you have already prepared at home a list of items to buy.
“Creating a budget is the easy part, sticking to the budget is the challenge.”
Author:
Kimberly Tan Castaneda, also known to her friends and family as “Kim,” is a financial literacy advocate, an entrepreneur, and above all, a full-time mom. During her spare time, Kim conducts financial literacy talks. This beautiful lady is not only good in managing her home but their family’s finances as well, and this is the reason why friends often ask her advises on money matters. Beyond her advocacy and small business at home is her priority – her family. She is, first and foremost, a loving wife and a doting mom to her adorable twins, Xyreb and Zander.
Thanks for this wonderful tips on creating a budget.For me personally avoiding debt is the best solution but all we know its hard to do.
Thankyou for this great tips. It will help me as a student in terms of budgeting. 😊
Outstanding post however I was wanting to know if you could write a litte more on this topic? I’d be very thankful if you could elaborate a little bit more. Appreciate it!
Hi, Erasmo!
Thank you for this feedback. Will do next time.
I love looking through an article that can make people think.
Also, many thanks for allowing for me to comment!